Analyst Ronald Kamdem from Morgan Stanley maintained a Hold rating on Vornado Realty (VNO – Research Report) and keeping the price target at $26.00.
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Ronald Kamdem’s rating is based on a mixture of positive developments and ongoing challenges at Vornado Realty. The company’s recent earnings report showed a beat in core funds from operations, indicating stronger financial performance than expected. Notably, Vornado Realty’s New York office leasing activity improved, with a significant increase in leased space and improved leasing spreads, reflecting a recovery in the office market sector. Additionally, the company successfully completed substantial real estate transactions, which enhanced its financial position.
However, despite these positive aspects, there are still some underlying concerns that justify a Hold rating. The overall same-store net operating income experienced a decline, and total occupancy rates, although improving, are still under pressure when compared to the previous year. Moreover, uncertainties surrounding the potential monetization of other retail assets could impact future financial performance. Therefore, while there are positive indicators, the mixed financial metrics suggest a cautious approach is warranted, leading to a Hold recommendation.
Kamdem covers the Real Estate sector, focusing on stocks such as Healthpeak Properties, SL Green Realty, and Prologis. According to TipRanks, Kamdem has an average return of 4.1% and a 51.45% success rate on recommended stocks.
In another report released on January 27, Truist Financial also maintained a Hold rating on the stock with a $37.00 price target.